FISCAL NOTE
Date Requested: February 13, 2024
Time Requested: 03:45 PM |
| Agency: |
Highways, Division of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1335 |
Amendment |
HB5657 |
|
|---|
| CBD Subject: |
Roads and Transportation |
|---|
|
FUND(S):
State Road Fund
Sources of Revenue:
Special Fund
Legislation creates:
Creates New Expense
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
Summarize in a clear and concise manner what impact this measure will have on costs and revenues of state government.
The provided fiscal note was prepared based on there being 2837 unincorporated communities within the state. This information was obtained from a Wikipedia article:
https://en.wikipedia.org/wiki/Category:Unincorporated_communities_in_West_Virginia.
Cost is provided based on fabrication and installation of village signs for all such communities simultaneously. Cost information is also provided based on incremental installation and maintenance of such signs over a period of time.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2024
Increase/Decrease
(use"-") |
2025
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
167,700 |
228,300 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
Please explain increases and decreases in personal services, current expenses, repairs and alterations, assets, other costs and revenues, including assumptions and data sources and delineation between start-up and ongoing costs. Please also include a long-range schedule of costs and revenues if fiscal impact is expected to vary in future years.
The following rationale was used in generating the costs associated with this note.
Unincorporated Communities – 2837
2 signs per community = 5674 total signs
Sign Costs @ $16.75 / sf
Size of the sign is based on the name of the village. Signs sizes include 15x36 (3.75 sf), 15x54 (5.625 sf), and 24x54 (9 sf).
Assume 25% of totals signs are 15x36 (1418 signs), 50% are 15x54 (2838 signs) and 25% are 24x54 (1418 signs).
Sign costs are:
15x36 – 1418 x 3.75 x 16.75 = $89,068.13
15x54 – 2838 x 5.625 x 16.75 = $267,392.81
24x54- 1418 x 9 x 16.75 = $213,763.50
Total signing cost = $570,224.44
U-channel costs @ $13.61 / ft
15x36 signs installed on 1 ea. u-channel @ 12 ft – 1418 x 13.61 x 12 = $231,587.76
15x54 and 24x54 signs installed on 2 ea. u-channel @ 12 ft – 4256 x 13.61 x 12 x 2 = $1,390,179.84
Total U-channel costs = $1,621,767.60
Total Material (signs and u-channel) Costs = $2,191,992.04
Labor Based on 50% of material costs = $1,095,996.02
Total Costs of materials + labor = $3,287,988.06. This would be the cost to fabricate and install all potential signs simultaneously.
If it assumed that signs were requested for 5% of the eligible communities per year over the course of 20 years until all eligible communities were signed for, 2% of the total signs and supports in place in any given year over the course of 20 years are impacted and required to be replaced, and assuming a 3% per year inflation rate:
The cost for the first year (FY 2025) would be $167,684.40.
The average annual cost over the remaining 19 years would be $228,322.94
These costs are reflected in the table provided for the note.
At the end of 20 years, if all signs in place that are older than 10 years were replaced simultaneously in order to ensure proper reflectivity/visibility, this cost would be $1,530,930.
Memorandum
Please identify any areas of vagueness, technical defects, reasons a bill would not have a fiscal impact, and/or any special issues not captured elsewhere on this form.
Costs are provided for this fiscal note based on fabricating and installing signs for all potential eligible communities simultaneously as well as based on a model where the signs are incrementally installed over a long period of time (20 years). This model also attempts to estimate the costs for maintaining the signs over the same time period, as well as replacing the necessary signs at the end of this time period
due to age/weathering. Signs for many unincorporated communities already exist, as DOH policies allow for the installation of signs for unincorporated communities when requested.
Person submitting Fiscal Note: Jonathan W Schaffer
Email Address: Jonathan.w.schaffer@wv.gov